CHALLENGES OF LAND RIGHTS IN MORTGAGE FINANCE DEVELOPMENT IN TANZANIA

Abstract

The laws relating to land rights in Tanzania allow an individual or group of person to acquire land as explored in the Land Act, 1999 [Cap. 113]. The occupancy of land in Tanzania either under a granted right of occupancy or customary right of occupancy allows a landholder to use land as a security in different applications such as mortgages. An application of mortgage financing requires a borrower to use the property to secure a loan. Land is mostly applied as a property to protect the interests of both parties however, it faces challenges because of its insecurity due to the absence of absolute ownership and limitation of time length of the right of occupancy. The radical title over the land is vested to the President who is a trustee for the citizens of Tanzania and no private ownership of land as provided in the Land Act of 1999. The nature of land rights interferes with the enjoyment of the land rights whereas the President is allowed by the law if necessary for the public purpose to acquire land at any time this is expressed under the Land Acquisition Act of 1967 [Cap. 118]. Other challenges based on land rights includes the poor valuation of land before compensation is given and the variety of land tenure.